When Congress established the Harbor Maintenance Tax in 1986, many in the port industry were under the impression the funds collected from cargo owners would be dedicated to keeping U.S. navigation channels open for commerce. We have, quite painfully, found this to be a false assumption.
Indeed, as much as half of the approximately $1.4 billion in annual HMT collections is used for unrelated purposes.
Meanwhile, surplus of collections over expenditures continues to grow, currently reaching nearly $5 billion and anticipated to soar to $8 billion by 2011, according to a February 2008 report by the U.S. Government Accountability Office.
At the same time, vital dredging needs of U.S. harbors and channels are going unfunded, as efforts to secure funding through federal appropriations processes fall short. Our nation’s ability to handle critical commerce is dwindling while the Harbor Maintenance Trust Fund surplus is swelling.
The GAO urged Congress to review links between the HMT and expenditures and establish a stakeholder advisory board to look at the issue — “to support the efficiency and equity” of the HMT, “as well as its credibility among stakeholders.”
Clearly, there are serious matters of efficiency, equity and credibility, and there seems no better time than now — when our nation is in dire need of economic stimulus — to let these HMT funds be broken loose for commitment to the purpose intended by legislation.
When one considers the tremendous importance of harbors and channels to U.S. economic well-being as well as national security, it would appear to be a no-brainer. According to a June 2008 report by Martin Associates, U.S. port activity contributed $3.15 trillion to GDP in 2007, while 13.3 million Americans worked in port-related jobs, generating $650 billion in personal income.
What better stimulus could our economy get than a boost supporting maritime commerce, utilizing money supposedly dedicated for such investment?